Capital One 2005 Annual Report Download - page 52

a pre-tax gain of $41.1 million. The respective gains were recorded in non-interest income and reported in the Global
inancial Services segment. F
The Global Financial Services segment’ s net charge-off rate was, down 44 basis points for 2004 when compared with the
prior year. Net charge-offs increased $99.1 million, or 19% during 2004 while average Global Financial Services segment
loans grew $4.7 billion, or 34%. The decrease in the net charge-off rate was driven primarily by a bias toward originating
higher credit quality loans within the Global Financial Services segment, improved collection experience and an overall
provement in economic conditions. im
The 30-plus day delinquency rate for the Global Financial Services segment was, up 11 basis points at December 31, 2004.
Global Financial Services delinquencies increased primarily as a result of an expansion of the international loan portfolio
uring 2004. d
VIII. Funding
Funding Availability
The Company has established access to a variety of funding sources. Table 5 illustrates the Company’ s unsecured funding
urces and its two auto securitization warehouses. so
T
able 5: Funding Availability
(Dollars or dollar equivalents in millions)
Effective/
Issue Date Availability (1)(5) Outstanding
Final
Maturity(4)
Senior and Subordinated Global Bank Note Program(2) 1/03 $ 1,800 $ 4,160 —
Senior Domestic Bank Note Program(3) 4/97 — $ 212 —
Credit Facility 6/04 $ 750 — 6/07
Capital One Auto Loan Facility I — $ 3,969 $ 381 —
Capital One Auto Loan Facility II 3/05 $ 151 $ 599 —
Corporation Shelf Registration 10/05 $ 2,500 N/A —
(1) All funding sources are non-revolving except for the Credit Facility and the Capital One Auto Loan Facilities. Funding availability under the credit facilities is
subject to compliance with certain representations, warranties and covenants. Funding availability under all other sources is subject to market conditions.
(2) The notes issued under the Senior and Subordinated Global Bank Note Program may have original terms of thirty days to thirty years from their date of issuance.
This program was updated in June 2005.
(3) The notes issued under the Senior Domestic Bank Note Program have original terms of one to ten years. The Senior Domestic Bank Note Program is no longer
available for issuances.
(4) Maturity date refers to the date the facility terminates, where applicable.
(5
) Availability does not include unused conduit capacity related to securitization structures of $5.9 billion at December 31, 2005.
The Senior and Subordinated Global Bank Note Program gives the Bank the ability to issue securities to both U.S. and non-
.S. lenders and to raise funds in U.S. and foreign currencies, subject to conditions customary in transactions of this nature. U
Prior to the establishment of the Senior and Subordinated Global Bank Note Program, the Bank issued senior unsecured debt
through an $8.0 billion Senior Domestic Bank Note Program. The Bank did not renew the Senior Domestic Bank Note
rogram for future issuances following the establishment of the Senior and Subordinated Global Bank Note Program. P
In June 2004, the Company terminated its Domestic Revolving and Multicurrency Credit Facilities and replaced them with a
new revolving credit facility (“Credit Facility”) providing for an aggregate of $750.0 million in unsecured borrowings from
various lending institutions to be used for general corporate purposes. The Credit Facility is available to the Corporation, the
Bank, the Savings Bank, and Capital One Bank (Europe), plc, subject to covenants and conditions customary in transactions
of this type. The Corporation’ s availability has been increased to $500.0 million under the Credit Facility. All borrowings
under the Credit Facility are based upon varying terms of London Interbank Offering Rate (“LIBOR”).
In April 2002, COAF entered into a revolving warehouse credit facility collateralized by a security interest in certain auto
loan assets (the “Capital One Auto Loan Facility I”). As of December 31, 2005, the Capital One Auto Loan Facility I had the
capacity to issue up to $4.4 billion in secured notes. The Capital One Auto Loan Facility I has multiple participants each with
separate renewal dates. The facility does not have a final maturity date. Instead, each participant may elect to renew the
ommitment for another set period of time. Interest on the facility is based on commercial paper rates. c
In March 2005, COAF entered into a revolving warehouse credit facility collateralized by a security interest in certain auto
loan assets (the “Capital One Auto Loan Facility II”). As of December 31, 2005, the Capital One Auto Loan Facility II had
the capacity to issue up to $750.0 million in secured notes. The Capital One Auto Loan Facility II has a renewal date of
March 27, 2006. The facility does not have a final maturity date. Instead, the participant may elect to renew the commitment
for another set period of time. Interest on the facility is based on commercial paper rates.
43